101592  |  INF209K01363  |  3 star  |  Bronze

NAV

$ 298.77

1-Day Total Return

-0.73
%
INR | NAV as of 8/21/2017 9:30:00 AM | 1-Day Return as of 21 Aug 2017

TTM Yield

0.00%

Load

Multiple

Total Assets

22.1 bil

Expenses

2.45%

Fee Level

--

Turnover

66%

Status

Open

Min. Inv.

1,000

30-Day SEC Yield

--

Category

Small/Mid-Cap

Investment Style

Mid Growth
Author
Morningstar's Take | 27/12/2016
by Kavitha Krishnan

Jayesh Gandhi has been managing this fund since January 2015; however, this is not his first stint at managing this fund. He also helmed the fund during the years 2005-2007. Gandhi is a reasonably tenured manager in the small/mid-cap space and has over 15 years of experience in investment management.

Gandhi plies a growth-oriented strategy that uses a combination of a top-down and bottom-up approach. While top-down views are used to scout for investment themes and take sector bets, a sentiment overlay is also incorporated to steer the portfolio across market conditions. Gandhi relies on relative valuation techniques to pick stocks that he perceives to be reasonably priced. However, the fund’s mandate allows the manager enough flexibility to play to his strengths.

We believe the success of the strategy depends on its execution, in no small measure. Gandhi is a capable manager who in our opinion has proved his skill on this fund across both the time periods that he managed it. Although Gandhi is mindful of the benchmark, he can tend to take significant off-benchmark exposure as a part of the strategy. His portfolio reflects his long-term views, and he tends to stay invested over a 18-36 month period. Having said that, Gandhi can tend to trim or add positions based on valuations.

Gandhi runs this fund as a highly diversified portfolio of around 50-70 holdings. While individual stocks don’t exceed 3% of assets, less-liquid stocks are capped at lower limits. Gandhi’s execution is reflected in the fund’s performance, which has remained above par under his helm. The fund’s long-term performance, however, remains mediocre. On an overall basis, we view the stability in the fund house’s equity team as a positive. Despite Gandhi’s relatively short tenure on this fund, our conviction on his capabilities leads us to assign a Morningstar Analyst Rating of Bronze.

Morningstar Analyst Rating™
Analyst Rating
Portfolio Role

A diversified small- and mid-cap fund that can deviate significantly from the benchmark.

People

Jayesh Gandhi is a tenured manager and has helmed this fund across two time periods.

Parent

We think Birla Sun Life AMC has been witnessing a lot of traction and stands out in many aspects.

Process

A growth-oriented approach that incorporates both top-down and bottom-up factors.

Performance

We would like to monitor the fund’s performance over a long term, given the brevity of the Gandhi’s tenure.

Price

The fund’s price is lower than the India Small/Mid-Cap category median.

Important Disclosures

Unless stated otherwise, this report was prepared by the person(s) noted in their capacity as Manager Research Analysts (i.e., fund analysts) employed by Morningstar, Inc., or one of its affiliates. It has not been made available to the issuer prior to publication.

Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Manager Research Analysts’ expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund’s or the fund’s underlying securities’ creditworthiness.

No material interests are held by Morningstar or the Manager Research Analyst in the financial products that are the subject of the research reports or the product issuer. Regarding Morningstar’s conflicts of interest: 1) Manager Research Analysts’ compensation is derived from Morningstar’s overall earnings and consists of salary, bonus and in some cases restricted stock; however, Manager Research Analysts are neither allowed to participate directly or try to influence Morningstar’s investment management group’s business arrangements nor allow employees from the investment management group to participate or influence the analysis or opinion prepared by them. Further information on Morningstar’s Code of Ethics policies is available from http://corporate.morningstar.com/us/asp/subject.aspx?xmlfile=540.xml

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For Recipients in India: Research on securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (“Investment Research”) is prepared by Morningstar Investment Adviser India Private Limited, which is registered with the Securities and Exchange Board of India. Your access to the Investment Research does not establish an advisory relationship with Morningstar Investment Adviser India. You should seek the advice of a financial professional before making an investment decision to ensure, among other things, that the security is suitable based on your particular needs and circumstances.

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